Closing Your Home Loan? Know the Documents You Need to Collect

Paying off your home loan is a huge relief. But it is not the final step. You need to collect the right documents to complete the home loan closure process. These documents are proof that you have repaid the loan and your lender no longer has any rights over your property.

In this guide, we will take you through everything you need to know about home loan closure documents. We will cover the process step by step and explain the importance of each document.

List of documents you need to collect

When closing your home loan, you need to collect the following documents from your lender:

1. No Objection Certificate (NOC): The NOC states that the lender has no claims or objections against you and that the loan is fully repaid.

2. Original property documents: The lender usually holds your property papers as collateral. Collect these documents once your loan is closed.

3. Loan closure statement: This is a statement from the lender confirming that the loan is paid off. It includes details like the final EMI paid and any charges.

4. Lien release letter: A lien is a legal claim on your property, giving the lender rights over it. The lien removal letter shows that this claim has been lifted.

5. Updated Encumbrance Certificate (EC): An EC proves that your property is free from any legal or monetary liabilities. Get an updated EC from the sub-registrar’s office.

6. Updated CIBIL Report: Once your loan is closed, check your CIBIL Report. Make sure it reflects that the loan is cleared.

Why is it important to collect these documents?

Collecting these documents for home loan closure is crucial because:

1. Proof of loan repayment: They prove that you have paid off your home loan completely.

2. Clearing lender’s rights: They release the lender’s rights over your property.

3. Legal proof: These documents help avoid legal issues if you wish to sell or transfer your property in the future.

4. Credit score update: Proper closure of the loan gets updated in your credit report, reflecting a good credit history.

Common mistakes to avoid while closing your home loan

1. Not collecting all documents: Many people overlook collecting documents like the NOC or lien removal letter. This can cause issues in the future.

2. Ignoring the CIBIL Report: Make sure that your CIBIL Report is updated after the closure. An incorrect report can hurt your chances of getting loans in the future.

3. Not verifying property papers: Check your property papers thoroughly when you collect them from the lender. Ensure that all documents are complete and in good condition.

4. Forgetting to update legal records: Once you get the lien removal letter, update your encumbrance certificate. This ensures that your property is legally free from the lender’s claims.

Bajaj Housing Finance Home Loan for your new property purchase

Now that you understand the importance of home loan closure documents, be sure to collect and verify each one to prevent any complications down the road. If you have successfully closed your current home loan and are considering buying a new property, Bajaj Housing Finance Home Loan can be an ideal choice to finance your next dream home.

Here are a few benefits of opting for a home loan with us:

1. High loan amount: Get a home loan of up to Rs. 15 crore* to turn your dream home into reality.

2. Low interest rates: Enjoy interest rates starting from 8.25%* p.a, with EMIs as low as Rs. 741/lakh*.

3. Quick approval: Get approval within 48 Hours* of applying – sometimes even sooner.

4. Long repayment tenure: Repay your loan comfortably with tenure of up to 32 years.

5. No foreclosure fee*: Individual borrowers with a floating rate of interest can prepay or foreclose their loan at no extra charge.

6. Easy application: Benefit from our doorstep document collection service for a hassle-free process.

7. Balance transfer facility: Transfer your existing home loan and get a top-up loan with better terms.

Ready to take the next step toward your dream home? Apply for a Bajaj Housing Finance Home Loan today.